The 2022 holiday shopping season is here! Here are 3 tips to keep in mind
It's beginning to look a lot like fall, but for many, Christmas is already on the mind.
In a year marked by high inflation and concerns about a possible recession, half of holiday shoppers say they plan to start making purchases by October, a recent Bankrate survey found.
That same survey found 40% of shoppers say inflation will change the way they shop, either by purchasing fewer things, opting for less expensive products, or leveraging coupons, sales or credit card rewards to shave off costs.
Steve McClain, spokesman for the Kentucky Retail Federation, said the holiday shopping season has been inching up the calendar for years, though recent trends with COVID and economic anxieties are moving the shopping season up event earlier. While thinking of winter celebrations in fall might not be for everyone, McClain said there can be some benefits to the shopping season starting a pinch earlier.
"Last year, we had supply chain issues, so the messaging was to start shopping earlier," McClain said. "I think one of the drivers we're seeing for this year is inflation. People are maybe looking at starting to shop a little earlier to stretch those purchases out 2.5 to three months as opposed to waiting until the last minute."
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Professional services company Deloitte is forecasting holiday sales are likely to grow 4%-6%, though that figure is possibly padded by inflation and is down from the 15% growth seen in the 2021 holiday season.
Daniel Bachman, an economic forecaster for Deloitte, attributed this smaller growth to economic challenges in the U.S. as well as consumer's shifting preference for experiences and services over "durable consumer goods" (things that tend to last more than three years), which were in higher demand early in the pandemic.
A Mastercard forecast projected similar growth of around 7% and noted that inflation concerns will lead budget-conscious shoppers to start the deals search earlier and lean on price-watching apps to score the best savings.
"This holiday retail season is bound to be far more promotional than the last," Steve Sadove, senior advisor for Mastercard, said in a news release. "Easing supply chain issues coupled with the rapid shift in consumer spending trends and over-ordering inventory have left retailers in an interesting position ahead of the holidays."
Holiday shopping season creeps earlier into October
Inflation has hit Americans' pocketbooks all year, sending costs of staples including rent, gasoline and many food items soaring. Many are worried those increases will cut into gifting budgets or be felt in the sticker price of presents.
"I think the big thought process with inflation is you're not sure where prices are going to go," McClain said. "It’s such a moving target."
The cost of borrowing, too, is higher. The average credit card's annual percentage rate (which reflects how much interest you pay, plus fees) is about 18%, the highest since the mid-1990s, according to Bankrate.
Retailers, too, are mindful of the extra strain on consumers and are trying to woo them into purchases with sales earlier in this last quarter of the year.
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McClain pointed to the October sales launched by major national retailers as a sign that competition for consumer dollars is fierce and is starting earlier this season.
This week, for example, Amazon is having its second major sale of the year, the Early Access Sale — a departure from hosting only one big sales event, Prime Day.
Earlier this month, Target advertised a slew of sales during a three-day "Deal Days" and Walmart’s "Rollbacks and More" sale runs until Oct. 13. Assorted other retailers are running specials this week to capitalize on the shopping buzz.
Now, a sale doesn't necessarily mean a good or service is being offered at its best price.
Patrick Brown, Adobe's vice president of growth marketing and insights, told USA Today that generally speaking, the biggest discounts tend to arrive between Thanksgiving and Cyber Monday, though real deals can be found earlier.
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3 tips for finding deals while Christmas shopping
Shopping early also doesn't necessarily mean buying early, but taking the extra time to develop a list to then shop around for the best deals is easier done when time is on your side.
"Know that retailers are going to start putting out sales earlier," McClain said. "Be a smart shopper and look at the sales that are coming out and know that as you get closer to the holidays you may or may not see those items you’re looking for at a cheaper price."
McClain offered other tips for a successful holiday shopping experience:
If you’re looking at stretching your holiday shopping budget out over a two- to three-month period, having a list would be important. Have a plan so you’re not running around, not having an idea of what you want.
Shop around. Make sure you’re looking for the best deal that you can find. I know that’s what I’ll be doing, shopping around and making sure what the price levels are.
Definitely don’t forget to shop local. You may find some unique items at a local retailer that will check an item off your list and it's supporting local.
Business reporter Matthew Glowicki can be reached at mglowicki@courier-journal.com, 502-582-4000 or on Twitter @mattglo.
This article originally appeared on Louisville Courier Journal: Christmas sales are already starting. 3 tips to find deals
